Hmmm, whether company is still at very early stage I would not agree with you by speaking of the data, as I mentioned the last three quarters a2 infant formula has been stablized. Will it still grow? the answer is yes, but the pace won't be as fast as most holders here expected. when a company turns from a fast growing company to a modest growing company, it will not be justified with high pe trading anymore, just like what BAL has shown you as an example. the pe will be adjusted back to match up industry average which is only 16. bkl is also another example, it is now also trading to match its sector average pe now at 20. If a2 is also going to trade at sector average, then even we forecasted npat at 71.2m nzd this year, the pe of 16 will mean company is only worth trading at 1.60nzd.
Hope this clarifies.
A2M Price at posting:
$2.21 Sentiment: None Disclosure: Not Held
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